Correlation Between Australian REIT and Symphony Floating
Can any of the company-specific risk be diversified away by investing in both Australian REIT and Symphony Floating at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Australian REIT and Symphony Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Australian REIT Income and Symphony Floating Rate, you can compare the effects of market volatilities on Australian REIT and Symphony Floating and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Australian REIT with a short position of Symphony Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Australian REIT and Symphony Floating.
Diversification Opportunities for Australian REIT and Symphony Floating
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Australian and Symphony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Australian REIT Income and Symphony Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symphony Floating Rate and Australian REIT is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Australian REIT Income are associated (or correlated) with Symphony Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symphony Floating Rate has no effect on the direction of Australian REIT i.e., Australian REIT and Symphony Floating go up and down completely randomly.
Pair Corralation between Australian REIT and Symphony Floating
Assuming the 90 days trading horizon Australian REIT is expected to generate 9.62 times less return on investment than Symphony Floating. In addition to that, Australian REIT is 1.87 times more volatile than Symphony Floating Rate. It trades about 0.0 of its total potential returns per unit of risk. Symphony Floating Rate is currently generating about 0.07 per unit of volatility. If you would invest 565.00 in Symphony Floating Rate on August 31, 2024 and sell it today you would earn a total of 137.00 from holding Symphony Floating Rate or generate 24.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Australian REIT Income vs. Symphony Floating Rate
Performance |
| Timeline |
| Australian REIT Income |
| Symphony Floating Rate |
Australian REIT and Symphony Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Australian REIT and Symphony Floating
The main advantage of trading using opposite Australian REIT and Symphony Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Australian REIT position performs unexpectedly, Symphony Floating can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Symphony Floating will offset losses from the drop in Symphony Floating's long position.| Australian REIT vs. Melcor Real Estate | Australian REIT vs. Dream Impact Trust | Australian REIT vs. Blue Ribbon Income | Australian REIT vs. Canadian High Income |
| Symphony Floating vs. Tech Leaders Income | Symphony Floating vs. Brompton Global Dividend | Symphony Floating vs. Forstrong Global Income | Symphony Floating vs. iShares Canadian HYBrid |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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